PhysicsWallah fixes price band for Rs 3,480-crore IPO ahead of share sale on November 11; check GMP

PhysicsWallah sets IPO price band at Rs 103-109 per share.

PhysicsWallah on Thursday announced a price band of Rs 103–109 per share for its initial public offering (IPO), which is scheduled to open for subscription on November 11.

At the upper end of the price band, the Edtech company is targeting a valuation of about Rs 31,500 crore. The Rs 3,480-crore public issue will close on November 13, while the allocation to anchor investors is set for November 10.

PhysicsWallah had filed draft papers with the Securities and Exchange Board of India (Sebi) in March through the confidential pre-filing route and received regulatory approval in July. The company later filed an updated draft red herring prospectus (DRHP) in September before submitting the final red herring prospectus (RHP).

PhysicsWallah IPO GMP 

According to plaforms tracking the grey market activities, the shares of PhysicsWallah are commanding a GMP of 8 percent in the unregulated market. Investorgain quoted a GMP of Rs 9 for the shares of the company, indicating a listging gain of 8.26 percent.

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Proceeds from the fresh issue will be used to fund expansion and growth plans. Of this, Rs 460.5 crore will be allocated for fit-outs of new offline and hybrid centres, while Rs 548.3 crore will go towards lease payments for existing centres.

The company will also invest Rs 47.2 crore in its subsidiary Xylem Learning, including Rs 31.6 crore for new centres and Rs 15.5 crore towards lease payments and hostels. Another Rs 33.7 crore will be directed to Utkarsh Classes & Edutech for lease-related expenses.

WestBridge-backed education platform Physicswallah Rs 3,480-crore IPO to hit Dalal Street on November 11

Additionally, Rs 200.1 crore will be used for server and cloud infrastructure, Rs 710 crore for marketing initiatives, and Rs 26.5 crore for acquiring an additional stake in Utkarsh Classes.

Share allotment is expected to be finalised on November 14, and the company is likely to make its stock market debut on November 18.

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